2024 (6) TMI 973

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.... which pertains to the Assessment Years [AYs] 2013-14- & 2014-15. 2. The grounds of appeals of the assessee are as under: "1. The Order of the Learned Commissioner (Appeals) is illegal and void of legal reasoning. 2. The Learned Commissioner (Appeals) erred in not properly considering and appreciating the replies and objections submitted by the Appellant including various binding precedents . 3. The Learned CIT(A) erred in not understanding the very fundamental that once the appellant does not maintain books of accounts, the offence is complete and therefore, getting them audited also does not arise. [Relying on 222 ITR 691 (Gau)]. 4. Without prejudice to the generality of the foregoing grounds, the Le....

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....that he has not maintained proper books of account and accordingly he estimated his income @ 4% on the gross receipts of Rs. 9,07,14,781/-. The ld. AO, after considering the submissions of the assessee observed that the assessee was subjected to tax audit under section 44AB of the Act on the basis of its gross receipts. Also, the ld. AO estimated the total income of the assessee at 8% of the gross receipts and accordingly made addition of Rs.45,20,661/- to the total income of the assessee. Subsequently, penalty proceedings under section 271B initiated against the assessee for failure to get the accounts audited under section 44AB of the Act and vide order dated 26-09-2022, Ld. A.O levied a penalty of Rs. 1,50,000/- upon the assessee. 5. ....

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....ain books of accounts for AYs 2013-14 and 2014-15. The Ld. AR also submitted that the assessee did not maintain books of accounts for the AYs. 2013-13 and 2014-15. 11. We observe that the maintenance of books accounts is a must as per section 44AA of the Act so as to enable the Income-Tax Authorities to assess the income of an assessee correctly and for this purpose it can be said that books of account must be a proper books of accounts. Otherwise, the purpose of the Act will not be fulfilled. We observe that the assessee did not submit before the ld. AO that he maintained books of accounts which is not in a proper form. Hence, the assessee's submission before the ld. AO that he did not maintain proper books of account will carry the mea....